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Stellar provides strategic update and releases information on economics of using ZeroGap technology for upgrading and recovery of heavy oil, stranded oil and transition oil.

OTCBB: SRRL

HENDERSON, NV, Sept. 9, 2011 /CNW/ - Stellar Resources Ltd.
(OTC-QB:SRRL) "Stellar" is pleased to provide an update on its business
strategy as approved by its board of directors. Stellar is committed
to developing and acquiring oil and gas technologies that have high
impact on the profitability of oil and gas projects. Stellar's
strategy is to apply these high profit impact technologies to its own
oil and gas exploration and production projects.

Stellar's own ZeroGap technology has potential to be a high profit
impact technology. Today we are releasing additional information from
the ZeroGap evaluation report written by Michael Tenhover, Phd to
illustrate what we understand as a "High Profit Impact Technology."

The ZeroGap technology is at an early stage and without results of pilot
or field trials it is always difficult to provide a definite value.

As discussed in this memo, the scientific and technical concepts related
to ZeroGap are valid and appear to be novel. It shares many
characteristics with existing commercial processes, but clearly targets
a unique niche.

Some of the encouraging factors related to ZeroGap based on this memo
are:

Very large overall market size- multiple billions of bbls of oil- $000's
of billions.

Room for new technologies in the marketplace and places where ZeroGap
may be fitted into existing approaches.

ZeroGap is a "Platform Technology" with multiple benefits.

The proposed technology is on a sound scientific basis and is likely to
find applications.

The current oil extraction technologies mentioned earlier have generated
multiple $billions in value for the companies involved. Cenovus Energy,
Inc (Calgary, CA) for example is a very prolific user of SAGD
technology. The majority of their income comes from SAGD oil production
and Cenovus has a current market capitalization of over $28 billion.

It is important here to point out the very wide variety of potential
target markets available to a new oil extraction technology. Just three
of those mentioned here: Stranded oil, transition zone oil, and heavy
oil would each constitute a huge market. Both stranded oil and
transition zone oil are both in the 100+ billion bbls range just in
North America. I think that both of these are potentially excellent
fits to ZeroGap approach—combining heat plus viscosity modifications
plus upgrading to recover more oil. For the estimate below, however I
will just consider the Heavy Oil segment.

Upgrading oil provides also lot of value in terms of pipeline
performance and value to a refinery. For refineries (reference Chevron
Crude Oil Marketing), formulas are available to calculate the increased
value of oil as it is upgraded.

Below API 34, Chevron values each 1/10 of a API increase at $0.0425 per
bbl. So, for API 15 upgraded to API 22, an increase in value of about
$3 per bbl. Another way to get at this increased value is to look at
commercially traded crude oils. For example Napo Crude (Ecuador) with a
API of 19 trades at a $12 discount to WTI Crude (API 39.6)- that works
out to $0.60 per API degree per bbl.

To give my best estimate of the value at this very early stage, I will
use the methodology that we used when I was with The Standard Oil
Company. The value at the commercial scale category is estimated by
assuming that the new technology if successful will capture 1% of the
market and have a 10% impact on that segment—this is a very
conservative approach. The other categories are estimated using
discounts based on project experience.

Here, of course, the market is very, very large. Just the one segment-
Heavy Oil is currently produced at about 10 million bbls per day.
That's $365 billion per year. In the future, more of the World's oil
production will be in the heavy oil category. In the next decade, the
amount of heavy oil production will likely double--- representing an
$800 Billion per year market.

Dr. Michael Tenhover, has over 30 years of experience in the oil and gas
industry and is the former chief scientist for advanced materials at
BP. Dr. Tenhover has 36 issued US patents, 3 invited review chapters
for scientific books, 89 publications in peer reviewed scientific
publications and has given numerous invited scientific lectures at
conferences and major universities around the world.

Stellar Resources Ltd.

Ray Jefferd
President & CEO

Safe Harbor for Forward-Looking Statements:

Except for statements of historical fact, the information presented
herein constitutes forward-looking statements within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, as
amended by the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the company to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include
general economic and business conditions, the ability to acquire and
develop specific projects, the ability to fund operations and changes
in consumer and business consumption habits and other factors over
which Stellar Resources Ltd. has little or no control. The company
undertakes no obligation to update or revise forward-looking statements
to reflect changed assumptions, the occurrence of unanticipated events
or changes to future operating results.